Nvidia's rapid growth fuels high pressure and long work hours for its employees
In Santa Clara, California, parking spots that were once used by more reasonably priced cars are now filled by a range of luxury vehicles, such as Lamborghinis, Corvettes, and Porsches and a few have been repainted in the lime green found in the Nvidia Corp. logo, it’s because Nvidia workers who worked in technical support for enterprise clients claimed they were expected to work seven days a week, frequently until one or two in the morning, they are stuck where their owners want to be: at the office.
The 31-year-old chipmaker, Nvidia has increased its market capitalization faster than any other firm in history. Founder and CEO Jensen Huang has set expectations of scrappiness and overwork, with a chaotic organization in which one boss can have dozens of direct reports, according to current and former employees. Huang has stated that instead of firing staff, like his competitors do, he prefers to "torture them into greatness." One former employee, who worked in technical assistance for enterprise clients, stated that he was asked to work seven days a week, often until 1 or 2 a.m. He stated that many of his former colleagues, particularly those on technical teams, worked longer hours.
Nvidia stock has increased by 3,776% since the beginning of 2019, as the company benefits from selling the key chip required for artificial intelligence development, creating many new multimillionaires in the process. However, present and former employees reported that the work hours are just as demanding and stressful, leaving little time for the jet-setting, home-buying, and leisure activities that many can now afford. A culture problem is growing, according to the ten persons who asked not to be named for fear of repercussions.
He called the workplace a "pressure cooker," citing multiple meetings that he characterized as screaming altercations, but he added that it was difficult to quit because of the compensation package. He left the company in May and asked to remain anonymous in order to talk openly about it."
Another, who asked anonymity to safeguard her job and worked in marketing until 2022, claimed she frequently attended seven to ten meetings a day, each involving over thirty people and frequently interspersed them with arguments and yelling. However, she claimed that the chance for even greater riches—the "golden handcuffs"—made her put up with it for two years. In part because its stock grants usually vest, or become accessible, over a four-year period, Nvidia hasn't had any issue keeping its employees during the past several years. This gives employees an incentive to stay and achieve their full pay package. According to the company's 2024 sustainability report, staff turnover decreased by almost half, to 2.7%, from 5.3% in 2023 when its valuation surpassed $1 trillion. Nvidia claims that the turnover rate in the semiconductor sector as a whole is 17.7%, which is far higher.
Hollywood mocked the computer sector cliché of "resting and vesting" in HBO's "Silicon Valley" series, which features a character who wastes time sipping large sodas and playing video games while waiting for his stock to vest. But at Nvidia, it isn't functional. According to a current employee, coasting would be awkward and even challenging in social situations.
Individuals who tried are now the focus of internal criticism. According to a former employee who was present at the discussion, employees complained to Huang at a late-year staff meeting about several of their coworkers going into "semiretirement" mode.
According to a former engineer who left the company in June, those who had worked there for over ten years would have more than enough money to retire. However, a lot of people don't because millions more will be waiting for the next stock grant to vest, the source continued.
Many Nvidia employees have larger nest eggs than their counterparts at other chipmakers, thanks to the remarkable surge in the company's shares. Colette Kress, the Chief Financial Officer, joined the firm eleven years ago and has around $758.7 million worth of equity. Her colleague Dave Zinsner of Intel Corp., who has a shorter tenure but a greater compensation package, owns stock valued at just $3.13 million. CFO Jean Hu joined Advanced Micro Devices Inc. in 2023 and holds $6.43 million worth of stock. Advanced Micro Devices Inc. is Nvidia's closest competition and has also experienced strong share growth.
According to the anonymous former engineering employee, working at Nvidia in 2023 and 2024 would mean regularly running into people with almost every seniority level expressing their wealth. He claimed to frequently witness colleagues browsing Zillow and casually mentioning new vacation properties. He continued by saying that it's now typical for workers to go to expensive athletic events, such as the NBA Finals and the Super Bowl.
Employees at Nvidia who contribute to the purchase plan have large budgets."It's just very surprising how much money they have in one stock," said Palo Alto, California-based real estate agent Spencer Hsu, who has dealt with several Nvidia employees this year, including on the weekends and after work. Clients are purchasing multibillion dollar properties with down payments ranging from 40% to 60%.
According to several of the recently departed employees, lunchtime conversations revolve around Nvidia's daily market gain or loss (but mainly gain). Thousands of workers are sharing financial advice on a business Slack channel, according to a current Nvidia product manager. The target audience for the organization is employees who have retained their vested shares, rather than the numerous others who sold off a significant portion of their stock well before its peak.
It goes beyond financial gain. Having worked at the chipmaker from 2020 to 2023, Airan Junior remarked that "working at Nvidia is like Disneyland" due to the several teams tackling intriguing technical challenges. Working on a Brazilian-based sales team, he said that the company's unusual culture played a major role in its enormous success. Over 90% of revenues in the AI chip market are currently held by Nvidia.
Huang does not have time for one-on-one meetings, lengthy PowerPoint presentations, or bureaucracy because he oversees 60 direct reports. He will get involved in what seem to be small decisions, like selecting a picture for a promotional campaign. Huang is renowned for requiring Nvidia staff members to submit a bulleted list of the five projects they are working on via email on a daily basis to a single email address. Huang occasionally replies to these emails directly to request additional information or to give instructions.
Having faced "real adversity" while leading Nvidia for more than three decades, according to Huang, has influenced his style of leadership. He claims to be encouraging his staff to complete their life's job. In a recent interview with 60 Minutes, Huang described his strict management approach as "it should be like that." "If you want to do extraordinary things, it shouldn't be easy."
It seems that most workers are in favor of Huang's unconventional management approach. Compared to his colleagues at Alphabet Inc. (94%), Apple Inc. (87%), Meta Platforms Inc. (66%) and Amazon.com Inc. (54%), he has a higher approval rating on Glassdoor (97%).
However, the former marketing staff member cautioned that Huang's flat organizational style occasionally performs differently than anticipated. According to her observations, employees are more motivated to compete with Huang for his attention than to cooperate for Nvidia's long-term prosperity as a result of the organizational structure of the company. Huang's subordinates follow the same hierarchy; according to the ex-technical support staff member, his supervisor had over 100 direct reports.
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Binny Bansal steps down from board of PhonePe
New Delhi, Nov 22: Flipkart's co-founder Binny Bansal has stepped down from the board of PhonePe, the fintech company said on Friday.
PhonePe also announced the appointment of Manish Sabharwal as an Independent Director and Chair of its Audit Committee.
In this role, Sabharwal will be instrumental in upholding the integrity and effectiveness of PhonePe's financial reporting, internal controls, and risk management practices, he company said in a release.
"PhonePe also announced that Flipkart's co-founder, Binny Bansal has stepped down from its Board of Directors. Binny acquired PhonePe in 2016 and has been on its Board since then," the release said.
Commenting on the board rejig, Sameer Nigam, CEO and Founder of PhonePe said, "I would like to express my heartfelt gratitude to Binny Bansal for being one of PhonePe's earliest and staunchest supporters. His active engagement, strategic guidance, and personal mentorship have profoundly enriched our discussions. Binny will be missed!"
Nigam further said that Sabharwal's depth of understanding of India's macro economy, coupled with his leadership in shaping India's policies for education, employment, and employability will be invaluable as PhonePe continues to work ahead towards shared vision of a Viksit Bharat by 2047.
Sabharwal is Vice-Chairman of Teamlease Services, India's largest staffing and human capital firm.
Bansal played an instrumental role in Flipkart's acquisition of PhonePe way back in 2016 and had been on its board since then (the payments firm separated from Flipkart in 2022).
